2009 Will See Strong Cost and Customer Focus in Supply Chain Behavior and Spending, Manufacturing Insights Predicts

In a new study, Manufacturing Insights spoke with technology vendors, consultants, and buyers about what the coming year will hold for supply chains in the manufacturing industry. Although there is no shortage of bad news and indicators, there is a general knowledge within the manufacturing industry that with a downturn comes an inevitable recovery. Even the automotive industry talks about past patterns of their industry being "first in, first out" when it comes to a recession and being ready to serve the pent-up demand. Economic downturns also represent an opportunity for manufacturing companies to recalibrate their operations. Channel partners can be rationalized, inventories reduced, production assets modernized, and, most importantly, supply and demand can be rebalanced in preparation for a recovery.

"In 2009, we expect to see a very strong cost and customer focus in supply chain behavior and spending," said Simon Ellis, Supply Chain Strategies Practice Director. "Continuing supply chain complexity will drive investments in optimization, modernization, and risk mitigation."

Among the key predictions Manufacturing Insights makes for the worldwide supply chain market in 2009 are the following:

Companies Will Exploit Well-Performing Existing Tangible and, Especially, Intangible Supply Chain Assets to Ride Out the Financial Crisis and Prepare for Recovery

Modern Supply Chain Organizations Will Put Expenditure Budgets Under Greater Scrutiny and New Investments Will Be Cost Savings–Focused, Requiring Shorter Payback Periods; Expenditures Will Be Made Through the Lens of Cost/Value

Supply Chain Technology Initiatives Will Have to Support the Standard Business Platform and Focus on Modernization and Decision Making

Economic Uncertainty, Particularly for Smaller Suppliers in Emerging Economies, Will Cause Manufacturer "Brand Owners" to Consider Strategic Investments at Critical Supply Points and Financial Support for Key Suppliers

Sustainability Will Discover Metrics; No Longer a Feel-Good Public Relations Proposition or Even a Regulatory Compliance Mandate; Emerging Standard Measures and a Desire to Benchmark Will Impact Sustainability Initiatives

This Manufacturing Insights report, Worldwide Supply Chain 2009 Top 10 Predictions presents the top 10 key predictions for global supply chains in 2009. These predictions focus on areas of continuing challenge for manufacturers, such as global supply network sourcing, asset utilization, customer relationship management, and total supply network cost — while being framed by the global economic slowdown.

For more information contact info@manufacturing-insights.com.

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